Building a fintech business can be a lucrative and promising business venture, but it’s easier said than done. For starters, you are likely aware that there is little room for monopolies with lots of disruptive tech affecting the niche. You have to strive to excel. So, how do you create a successful fintech company? Well, that’s what this article is about! We have compiled a simple guide to help you get started with building a successful fintech business from scratch.
Identify your goal and stick to your niche
Success is only imminent when one has a goal and a plan of what he/she wants to achieve. It is essential that after assessing the different fintech subdomains, pick one that you are passionate about and focus on it. Begin by asking yourself which fintech business niche you want to focus on? What problem or need does your idea/business solve? What steps to take? When to start? And how to make it successful. The reason why most entrepreneurs fail is hopping from idea to idea. Today you want to do insure-tech, tomorrow mobile banking or personal finance management! You can also focus on a specific audience, on demographics it is advisable to start locally then expand to the regional or global market
Before you begin or write down the plan, make sure you know the ins and out of the complex fintech and banking industry. Be conversant with the laws, limitations, and regulations authorities in your country.
Work with skilled professionals
Fintech is not like most other businesses, you need a pool of talented pros to thrive. You need to work with experienced financial app developers and engineers who know what they are doing. The nature of the business requires one to stay on top with the latest technological innovations. You can grow your staffs’ skills and talents by providing training opportunities that allow them to thrive in the fintech world. This way, they can come up with better ideas and solutions for your customers. Other than developing talents internally, you can also hire external talent or partners to gain the skills needed by your business. If you choose the latter options, conduct thorough onboarding to set clear expectations
Invest in cybersecurity
Investing in Cybersecurity is very important in fintech. Considering you are dealing with people’s finances and information, expect that cyber-criminals won’t be kind with you! In this regard, protecting your system and networks from malicious attacks is not an option. Remember, your clients will always want to know that their personal information is safe and all their sensitive data encrypted and stored properly.
You must ensure you have a dedicated IT team that monitors and handles your cyber security. Sounds like an expensive venture for your startup? Well, you can outsource managed IT services to get proper cyber security services on a budget. Your business depends on security, so ensure you invest in defending against attacks.
Find the right investment
Part of growing your business is finding the right financing to scale its impact. Fintech businesses cost a lot of time and money majorly because of the technological innovations involved. You can raise money from venture capital, crowdfunding, bank loans, fintech incubators, accelerators or fintech contests etc. Always ensure that you have a visual prototype when approaching potential investors for funding.
Always strive to adapt to the digital revolution
Having a product in the market or a business running doesn’t stop at that. You always want to try and find that which will distinguish your product from the rest. Customers will always want to find reasons to keep using your product and not shift to your competitor.
Ideally, you need to ask yourself what is your competitive advantage or unique value. You can succeed at this by learning market trends and innovating ways to keep you going
Below are some ways you can go about it:
· Adapt to the digital revolution or changes by a building space or layer that complements your existing products and services
· Consider new channels to penetrate your product or service
· Create new products for the new and emerging digital demands
· Improve your current product i.e., make an app perform faster or add extra features, etc.
· Look into your management structure, talent management, and business models. You can adopt new business models and train your staff to fit into the revolution
In a nutshell, stats point towards the growth of the fintech market in the coming years. In other words, there are exciting times ahead for fintech entrepreneurs. While it may sound easy, it is also hard to stay afloat in such a competitive sector. You need to put in work into your business and keep evolving to stay ahead of the competition.